Free business calculator
Calculate gross profit, net profit, profit margin, and ROI. Include product costs, advertising, platform fees, and other expenses for a realistic result.
Enter your numbers
Please enter valid numbers. Revenue and costs cannot be negative.
Your results
$10,000 − $6,000 total costs = $4,000Result copied.
How to calculate profit margin
Profit margin shows how much of your revenue remains as profit after costs. This calculator separates gross profit from net profit so you can see how operating expenses affect the final result.
For example, $10,000 in revenue minus $6,000 in total costs leaves $4,000 in net profit. The net profit margin is 40%.
Revenue minus the direct product or service cost.
Revenue minus product costs, advertising, platform fees, and other costs.
Net profit divided by total costs, expressed as a percentage.
Frequently asked questions
What is a good profit margin?
A good margin varies by industry, business model, and growth stage. Compare your result with similar businesses and your own historical performance.
What is the difference between gross and net profit?
Gross profit subtracts direct product or service costs. Net profit also subtracts advertising, platform fees, and other operating costs entered here.
Can profit margin be negative?
Yes. A negative margin means total costs exceed revenue for the period being measured.
How is ROI calculated here?
ROI equals net profit divided by total costs, multiplied by 100. When total costs are zero, ROI cannot be calculated and is shown as 0%.